WEEK 10, Discussion Question 1: “Transshipment Problems”

Can we apply transshipment models to inventory applications? Why or why not?
Is the transportation model an example of decision making under certainty or decision making under uncertainty? Why?

Can we apply transshipment models to inventory applications? Why or why not?

Yes, transshipment models can be applied to inventory applications. This will ensure lower costs through proper management and disbursement of the inventory while providing faster response times. The inventory levels can be managed by location in order to ensure minimal levels and the shipping will occur for less cost and faster service due to inventory placement within regions (Taylor III, 2011).

Is the transportation model an example of decision making under certainty or decision making under uncertainty? Why?

The transportation model is an example of decision making under certainty. The data, in this case the route and items, has to be known in order for the decision making to be determined under certainty (Taylor III, 2011).

Explain the assignment model and how it facilitates in solving transportation problems.
What benefits would be gained from using this model?

2ND RESPONSE

Can we apply transshipment models to inventory applications? Why or why not?
Yes, it does seem that transshipment models can be applied to inventory applications. Inventory applications deal with transporting goods to different destinations just like the transshipment models. By applying a transshipment model to inventory applications, we will be able to lower cost through accurate management and disbursement of the inventory. Transshipments of inventory to customers can encompass numerous storage facilities and stocking locations. The transshipment model helps the management of a company in deciding the optimal number and location of its warehouses.
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